The newsmaker of the day is obviously HDFC and HDFC Bank. The merger approved by the Board has sent the twin stocks and the bourses soaring.

HDFC zoomed up 16.5% to an intraday high at Rs.2855.35 and HDFC Bank rose 14.5% to Rs.1721.85, juts a tad away from its 52-week high of Rs.1724.30.

HDFC will be merged into HDFC Bank and the shareholders of HDFC will get 42 shares of HDFC Bank for every 25 shares held.

Subsidiary/associates of HDFC will become subsidiary/associates of HDFC Bank and HDFC’s shareholding in HDFC Bank will be extinguished, making HDFC Bank a full-fledged public company.

HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.

Closing is expected to be achieved by Q2/Q3 FY24.

Apart from the scales of economy, the combined Balance Sheet will be of Rs.18 trillion with net worth of Rs.3.3 trillion, enabling larger underwriting at scale.